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Kolkata: The management of Kotak Mahindra Bank has stated in a communication to the stock exchanges on November 14 that it is going to hold a board meeting on November 21 and a proposal to split stocks will be discussed. The face value of Kotak Mahindra Bank shares is Rs 5 now. After the split, it will go down. It will be a major decision for the shareholders.
However, the record date for stock split is yet to be determined. Any stock split increases the number of shares in the market while reducing the price of a share. In short, new investors find it easier to purchase shares post stock split. The record date of the stock split is a significant date. One must be owning shares on the record date in order to be eligible for the split.
This is the second split in the shares of Kotak Mahindra Bank. The first one took place in 2010. At that time the face value was halved from Rs 10. The expectation on D Street is that the management could announce both the stock split ratio and the record date at its board meeting on November 21.
Kotak Mahindra Bank is one of the country leading private sector banks. The market cap of the bank exceeds Rs 4.14 lakh crore, making it one of the country's largest financial institutions. On Nov 14, at close of trade, the Kotak Mahindra Bank shares were trading at Rs 2,082.80, up Rs 7.60 or 0.37%. The 52-week high and 52-week low of the stock are Rs 2,301.90 and Rs 1,689.80 respectively. The stock has appreciated 20.90% in the past one year.
The bank maintains a strong financial position and has a stable presence in the stock market. Following news of a stock split, many investors and market experts believe that a lower share price could increase investor interest and enhance liquidity in the stock market. The shares of Kotak Mahindra Bank were listed on BSE on December 20, 1995. It was incorporated as Kotak Capital Management Finance in 1985 and later turned into a bank when it was named Kotak Mahindra Bank in February 2003. It was founded by Uday Kotak as Kotak Capital Management Finance.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)
